FX levels to watch – GBP/USD, EUR/USD, USD/JPY, AUD/USD

USD/JPY and AUD/USD appear to be at turning points, while Brexit fears have hit GBP/USD once again.

GBP/USD forex pair
Source: Bloomberg

GBP/USD declines continue
Yesterday’s GBP/USD decline has continued into today, although at a gentler pace. Nonetheless, the decline from $1.47 continues, and the likelihood is that we will continue to see weakness in coming sessions, with a rally off the back of oversold levels yesterday and today potentially bringing out further sellers.

The next area to watch is the 50-day simple moving average (SMA) at $1.44. Below this, we look to the rising trendline that has held so far this year, with support coming in around $1.4340.

Time may be right for EUR/USD bulls
The rate of decline here has slowed markedly, and with both the 200-day SMA ($1.11) and the rising daily trendline off the December lows now in prospect, bulls may find their time has come.

Ideally the price needs to close back above the 100-day SMA ($1.1177), and then this would raise the possibility of a move back to the 50-day SMA at $1.1307 and potentially higher for EUR/USD.

A close below $1.1060 would open the way to fresh downside, perhaps as far as $1.08. 

USD/JPY rally comes to a halt
Prime Minister Abe’s decision to defer a sales tax hike may well have spelled the end of the USD/JPY rally that was almost a one way move in May. A close below the 50-day SMA at ¥109.72 would mark the return of the longer-term downtrend, which looks highly likely.

A rally would put the pair back in consolidation mode, but a close above last week’s high at ¥111.50 is needed to indicate more upside is on the way. 

AUD/USD propelled by strong GDP figures
Good GDP numbers have helped the pair to escape the general risk-off atmosphere this morning, although now it needs to close above $0.73 to confirm the new uptrend.

Certainly the pullback from mid-April seems to have run its course, so we remain bullish. A close below $0.72 would dent that view, but it needs a close below $0.7150 to confirm a new leg lower is underway. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.